Welcome to Addisons Insolvency Update for March 2012.

Recent months have brought a myriad of legal developments in the insolvency/restructuring field. We report on some of these below.

De Facto Directors

The Full Federal Court has found that an external consultant who was critically involved in the key strategic planning and management of a mining company was in fact a section 9 director in Grimaldi v. Chameleon Mining NL (No 2) [2012] FCAFC 6.

Litigation Funding and Liquidator Proceedings

Litigation funding continues to rise as do the size and complexity of funded actions, including class actions and funded liquidator proceedings. The ASIC has extended interim class relief to lawyers and funders involved in legal proceedings structured as funded representative proceedings. Other developments include a recent Federal Court decision increasing the scope of liquidator access to documents.

Conversion and Detinue

The recent success by CHEP Australia Limited in its conversion claim against Bunnings reiterates the importance of insolvency practitioners exercising caution when potentially dealing with another's goods – particularly if demands are made for their return.

We hope you enjoy this edition.

If you would like further information about anything in this Update please contact one of the Addisons Insolvency Team.

The assistance of Heather Collins, Lawyer, and Alec Bombell, Graduate, of Addisons in the preparation of this publication is noted and greatly appreciated.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.